Can International Competition Drive Insurance Market Growth? Evidence from Vietnam

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作者：

World Bank

来源地址：

http://hdl.handle.net/10986/34132

关键词：

INSURANCE MARKET;  FINANCIAL DEVELOPMENT;  FOREIGN OWNERSHIP;  COMPETITION;  MARKET STRUCTURE;  LIFE INSURANCE;  Report;  Rapport;  Informe; 

年份：

2020

出版地：

Washington,USA

语种：

English

摘要：

This paper provides an analysis of ex post facto effects after the entry of foreign companies into the Vietnamese insurance market and argues that foreign competition has positively impacted the insurance industry based on evidence from Vietnam. Based on 16 years of data, the paper presents the main observations on the impact of international competition on the insurance market after Vietnam opened up to foreign investors. The results show that in Vietnam: after foreign penetration, local companies do not lose market share rapidly as liberation takes time; foreign insurers may dominate the domestic market, but if insurance penetration is low, this impact does not endanger the financial security of the country; the dominance of foreign insurers in the life sector could change the traditional insurance trajectory in emerging economies , which are traditionally oriented mostly on developing compulsory third-party liability insurance; foreign insurers make long-term contributions to the local economy if they invest in local capital markets. Thus, the paper argues that foreign competition has positively impacted the insurance industry based on evidence from Vietnam.